tv Real Money With Ali Velshi Al Jazeera January 7, 2015 2:00am-3:01am EST
>> changing the way we live. >> thank you jacob ward that's all for now. the conversation continues on the website aljazeera.com/considerthis. we are on facebook and twitter @ajconsiderthis @ajconsiderthis, and tweet me @amoratv. >> well, prices in a free fall. and i'm looking at where the bottom might be and when we'll get there. and talk about a dangerous job. a woman who makes a living smuggling oil for isil. and red states, blue states, the divide between them could put all of america's prosperity in jeopardy. i'm ali velshi and this is "real money."
>> don't adjust your tv sets. what you're seeing is real. oil prices are falling and the more they fall, the more they fuel turmoil in america and around the world. $47.43 a barrel in crude trading today. we haven't seen a price this low since april of 2009. and then the world was in economic turmoil. back then, there was a recession that sapped the world's demand for oil. but today's story is very different. new supply, fueled in part by america's fracking boom, is out stripping the demand around the world. ands is not so much a demand problem, but a supply problem. so far they have fallen 55% from june of 2014, and industry analysts warn that oil prices might have room to fall more below 30 or $40. you might be saying, i'm
enjoying these low gas prices but i'm going to tell you the other side of the story. that hit u.s. stocks that fell 1% in trading. against this backdrop, the white house promised to veto any legislation in congress that gives the go ahead to the intentional keystone xl pipeline. and that's the pipeline that goes from canada into the united states, and it would pipe an additional 5,043 barrels a day from canada into the united states, and it has been held up for years citing environmental concerns. republicans in congress reject that and they promise to introduce a bill tomorrow, the first order of business moving it over the rejection of the president. why do we need more oil coming into this country when there's already a gut? and the rest of the world is reeling from the prices.
saudi arabia started offering discounts on the oil that it sells in europe. moves like that make sure that oil prices have nowhere to go but down for now. it's great for oil customers and terrible for oil producers especially for america's shale oil producers. they spend three times more per barrel to frack oil out of the ground out of solid rock than the saudis pay for production. you can get at $47.93, they're still making money, and if you pay $52 a barrel, you're not making money. this is the saudi's endgame, to weed out competitors in the united states by underpricing them. that could be something else to bring russia to its knees, or to bring iran to the table. who knows. but for more
on it, mary snow has this report >> reporter: just as producers pipe oil, the free fall. and saudi arabia, the largest producer is not budging. analysts say that it's unclear how much further the price can drop. >> could we go to $40? yes, and we can go lower than that, we have been there in 2008 and 2009, but the thing in today's economies, they're nowhere near as bad as that. >> back then, the demand forced prices below $40 a barrel. and now too much supply is the big reason behind the price drop. among the countries adding to the supply, the u.s. domestic crude oil reached a peak production, and in iraq
the highest level since 1980. one analyst say that he doesn't see an end in sight soon. saying markets will have a considerably downside risk, and it will likely take into the year before the prices bottom. the question, what will prompt the oil market to stabilize? some analysts say that the demand won't be enough. and they expect the u.s. production to be at the top of the list. >> we think that the weakest supply picture, the north american shale producers, and exploration and production crude oil producers. >> a week late because the shale industry requires heavy capital investments, and they're drying up. and he says crude production could be cut by $1 million a day in north america alone. mary snow, aljazeera. >> and if oil prices are falling because of excess supply, due in large part because of the excess and
downward prices for now. and that means that we should see falling prices for much of 2015. our next guest, john, good to have you here, and everybody wants to know about the prospects for oil prices, but i want to ask you a couple of questions. i grew up in canada when oil sands were a big deal. and it was never profitable. it was for the future when the prices were higher and the cost of the technology went down. but what it's hard to understand, what price oil has to be apt to make money. because as we described earlier, if you were just drilling a hole in the ground and oil is gushing out, it's cheap, $20 a barrel and if you have to go to the hardest places in the world to get t. >> a lot of people have been looking for one number that tells the whole story, and unfortunately, there's no number. if you've been out there in say
north dakota for a while, and the costs are low, the production is going to be down. and there are places up there in eagle texas, they have probably a break even price at $60, and we left that a long time ago. so they're in deep trouble. and you see companies doing what they can to survive. dividend cuts and a lot of things go down. there's not that number. and obviously, if you're at 47 now's, you get into a number that starts with a 3, it's very difficult for shale producers to make money. so we're going to balance ourselves out. with 1 million barrels a day we need the shale production and we have to find a play where shale meets demand. >> 90 million barrels a day and china and india is going up, but we always used to have a pretty good matchup between what we would produce and what
we would use on a daily basis, and now have we have lost that. as much as people don't like opec, they had control over that, and now you have norway and canada and the united states, and we don't control anymore. >> the idea of when opec was formed back in the 60s rather than let the market take the marginal barrel off, they up. >> because the average company doesn't want to do that. >> for years, they would do it and they did it well or not well. >> and publicly or less publicly. >> this time they said we're not doing it, and you get to what i refer to as an order book strategy. whose order books are going to fill up and who is going to have excess crude? if there's excess crude, in the second quarter in particular there's a large amount of excess crude. it can't go into storage forever. >> where does it go?
some of it goes on ships? >> for years, there was a lot of additional storage capacity put in, which is the main crude. and that had drained to a large degree for a variety of reasons, and that's going to fill up. and they will find every place they can to fill it. it makes sense to buy crude now and put it in storage and sell it. >> because most think that it's going up. >> it's a question of they think it's going up, and you can sell now for delivery 12 months out. >> if you can store it, you can make money on it. >> you can easily sell it. so these markets do balance themselves out, but the problem is, we're not sure how. >> let me ask you something, if the saudis are trying to get some americans out of the market, how low -- what number can they keep oil that will cause wells to close down and make sure that nobody drills new ones? >> if this market is able to go
to 30, or drop below, there's going to be a lot of pain. it's what the saudis want to do, not necessarily drive them out of the market, but if you look at u.s. production in 2008, it was at 5 million barrels a day, and the market can't have that disappear, we need that. and they want to know what the pain point is. what is the point at which the u.s. shale producer cries uncle. when you start to see not just rig cuts, or dividend cuts, but cease production. >> so it might be a game, and it might end one day when they see what the price is. >> or you might call it a research prompt. >> john kingston, the oil prices could hurt communities that count on drilling and refining crude. >> we're going to be like a water snake. we're keeping a refinery -- it
doesn't have enough oil to run, got bless because there won't be anything left. >> from bradford, pennsylvania. [[vo]] an america tonight in-depth series. >>my first column was, “hey, where are the weed-smoking moms at?” [[vo]] one year legal. >>i'd try chem 4, alien dog, and girl scout cookies. [[vo]] and it's become big business. >>the state of colorado is profiting immensely off of this. [[vo]] now, we cut through the smoke and find out what's really going on. >>we can show marijuana is leaving colorado. [[vo]] the highs and lows of a year on pot.
easy, but prices are making old-fashioned ol pitching as well. stripper wells are struggling to remain economically viable, putting a heavy strain on some towns. tom achermann visited one such town. >> reporter: outside of a mcdonald's restaurant in pennsylvania stands a relic of the oil industry's dawn. in an area where the first industrial well was drilled in 1859, this one is still pumping. and so are hundreds more scattered around the town. these so-called stripper wells can draw up to a couple of barrels a day from the huge pool of crude that lies beneath the surface. >> it will probably go another hundrediers if we're allowed to do it. we don't get regulated out of business. >> looking at them individually, the wells don't seem impressive, but there are more than 400,000 of them operating in the u.s., and they
account for 11% of u.s. total oil production. in 2012, by comparison, these marginal wells matched owl of qatar's output. and the latest in hydraulic fracturing could extend the working life of these wells, but as the price of crude past year, many operators are not shutting down. they say that the profit is not there, and burdensome government rules threaten their long-term survival. >> at least at $100 oil, this was some possibility of compliance, but losing almost 50% of the price of your product over a 3--month period it's stifling and suffocating. >> the steep price decline has forced big companies with expensive fracking costs to detail their
retention plans. in the u.s., dropped by 40% in just the month of november. bill klein spent 40 years in the oil drilling business, and he doesn't know how long his town can keep it in business. >> the refinery doesn't have enough oil to run. god bless bradford, because there won't be anything left. >> but if the price of crude doesn't start recovering soon, no amount of oil that's still left to pump here will be enough. >> by the way, ali, that refinery that you just saw is described as the oldest continually running refinery in the world. burr it has had a few close calls. company went bankrupt, and until it was sold a few years ago, they thought this it was going to close for good. >> i'm glad that you did that
story, and a lot of people don't know that a lot of the first oil wells in this country came from pennsylvania. but i just had a conversation with john plat about the numbers. the average, $17 a barrel, they drill into the ground and the oil comes out and the frack, it's in the 50s. so 47 bucks a barrel, they're losing money, but the stripper wells that you're talking about, they have been there a long time. and there's no capital cost and investment. and how come they're not making money at 47 bucks a barrel in. >> you talk to them. and they continually talk about the stifling cost of regulation, and this is not federal regulation. they're talking about the state of pennsylvania, which has been rather welcoming to fracking and they complain about that. but moreover, it's the fact that their -- you notice the refinery there, it's captive to that local refinery, and if the
refinery doesn't find it profitable, and profit margins are thin, and in this case this is lubrication oil that they mine there, then the refinery can't use their product, and they have no place else to go, and that really is one of the determining factors of whether they can continue to stay in business or just choose to shut down. >> and then you have the situation that got us in america, where regions and towns are built around particular industries, and the gentleman said that, if the refeignry doesn't have enough oil, god bless bradford. >> one exception, they have the world headquarters of zippo lighters, and that keeps them on the map. but you can't tell how long they will last as well. but they have been in business for more than 80 years. >> all right, tom, good to see you, tom achermann joining us on the story. one group not concerned about falling oil prices are consumers, and i get tweets
from people, who say, why do you spend so much time complaining about lower oil prices? it means that drivers are paying less at the pump. another thing, a gallon of gas is more than a dollar cheeper than last january, and in a year's time, $10.10 a year, that's a substantial economic stimulus. $150 billion worth. joe bynes works with the retail, and he joins me now. i'm obsessed with putting numbers up. how much oil costs, and how much people can survive? how much money is in america's pockets? and your guys have calculated, just on the driving side, home heating and everything it's $150 billion if that $1.10 drop were sustained for a year. it's a lot of money.
>> it's a lot of money, the way you might break it down, it's about $50 a month per driver forever, until the prices go back up again, ands this the consumers. >> and we know for instance that we don't have the yo-yoking between small cars and big cars anymore, and it's not as if somebody is going to go out and buy a less fuel efficient car, we don't drive a lot as a result of it, so where does the money do? >> a substantial portion of it does go to the retailers, and unless you happen to be a consumer that works in the oil and gas industry for the vast majority of consumers, this is a pure economic stimulus, and it benefits people disproportionate. so an additional $50 in the pocket of an affluent family is less relevant for a family that's working paycheck to
paycheck, and there are lots more of those people unfortunately, and that's where you see the real impact of the low gas prices. >> are we in a place where it's a real gain, it's a boon, and people are going for dinner and making renovations and buying appliances and cars, or are people breathing a sigh of relief, an extra $50. >> you laid it out. the bass prices are like carbohydrates, and the first people that benefit, convenience stores and restaurants and places like that. and over time, as consumers believe that they're here to stay, and the prices may be low for a long period of time, which is sounds like that's the case, they begin to treat it more like a wage increase, and less like a bonanza that they got at the end of the month, and that's when they start thinking about repairs and consumer electronics and durables and other things, and we're starting to see some of that as well.
>> so when we have the official government stimulus, and that's a big one. don't think that the $787 billion, that was an out liar. retailers were getting excited, spend your rebate here. but if people saw the money, they would spend it as opposed to receiving more money. i'm not seeing that, but are there retailers thinking about how they capitalize on this? >> . >> absolutely, first and foremost, twice a big a drop was the last half 2008 and the big difference was, we were in recession then. now it feels like it's a real win to the consumers, and the question mark to the retailers is, how are the consumers going to change? so the ones putting impulse purchase items in front of the consumers on a much more regular and pervasive basis.
if i were a retailer, that's exactly what i would be doing. the easy to reach, easy to buy no matter the category that you're in, that's the first thing that they will do. over time, over the next weeks and months, you'll start to see some shift in consumer behavior, and move toward durables and other purchases because they feel they have more money. >> that's me, by the way. i'm that consumer. >> we love you. >> good to sigh you, joel, the managing director at partners. most americans didn't have the chance to see it until now. you were going to meet the foot soldiers smuggling oil for isil. >> where did the oil come from? >> it comes from syria, they bring it across the river to their village and homes.
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>> almost we told you that the terror group isil has reportedly put together a budget of $2 billion, part of its effort to create legitimacy. but it rise heavily on stolen oil that it's no longer selling at the premium price that's it was. and it's going to be difficult for the group to make it's financial goals.
think of isil ending with a financial benchmarks. but as any schiffrin reports isil has other ways. the story that you're about to see contains graphic midges. >> down a bumpy turkish road a few feet from the syrian border, we set out to find isil's income. our guide, a female smuggler her tools, jerry cans earmarked for gas. in a discrete hotel room in a nearby city, we see how isil recruits. he's a 27-year-old it expert. his tools, a keyboard and mouse, over cups of tea. we learn how isil is organized. our expert, a syrian, once employed as an isil salesman. >> . >> isil took over factories,
and they needed civilians not connected to hem. >> the three people all demanded anonymity, show how isil's management and organization and wealth, depend on foot soldiers. they work for a self proclaimed islamic state that might claim to fly the flag of islam, but it's heart is corporate. our journey begins on the road with 22-year-old setting. >> were a lot of people smuggling, and was it easy to smuggle through this area? >> every night for 18 months she would take this tushish road to the syrian border. the turkish town, on this day, our car had this road to itself. hajibaja is so close to the syrian border, they can drive across.
it's best-known as home to smugglers. tractors used to transport and the jerry cans used it store isil's main income, oil and gas. town smells of it. smuggled across the river. >> where did the oil come from? >> it comes from syria. they bring it across the river and take it to their village and store it in their homes. >> inside of syria iraq, isil has 30 oil refineries, and they sell it every day for 1-$2 billion. and they sell to turkey. the turkish soldiers found out how. the gas is pumped flu underground pipes or the smugglers move it across the river in jerry cans. buses. >> they will construct a gas tank, and make it bigger so it can hold 45, 50 gallons, and if there's no army, you can make
good money. >> for these people, it's not ideological, it's business. >> the people are like outsiders. >> not so much to buy december ill. >> the town didn't like it. after we filmed the jerry cans smugglers stopped our car. we tried to get away. >> okay, okay, we're stopped. >> they released us only after seth convinced them. anyone interrupting their business, and profits isn't welcome. >> how much money did you make? >> your income depends on how much gas you bring. if you bring a ton, you bring 400, 7900, 1300. and if you bring ten, you make $10,000 a night. and it depends on good you are.
>> the only thing that separates syria from turkey is a thin river, and it has been a haven, not just gas is crossing the border, but fighters. >> we have brothers from uk. >> foreign fighters fueled isil and fueled it's rapid rise. they star in isil's unprecedented social media campaign. hundreds of propaganda videos, well filmed. and many showing photogenic protagonists. >> . >> i'm from south africa. >> foreign fighters proudly have their citizenship from the united states, and a few dozen are american. >> after iraq, aljazeera, we're going for you, barack obama. >> and this is the man who helped vips them to join. >> how easy was it to recruit
all of these people on line? >> they will follow anything you tell them. they have been brainwashed. we talk to them about religion paradise and virgins. >> in a hotel room near the syrian border, half a pack of cigarettes. a 27-year-old who wants to be known as salam, reported isil's media strategy. they spent days online, and they painted isil as populous and popular army. and the syrians who opposed them were incomp dent infidels. >> what you said was it true? or false. >> almost all of it was lies. >> americans are always trying to hack into these accounts, and how did you avoid other accounts? >> we changed the passwords
every 12 hours, and we hand wrote all of our contacts, so if the accounts are attacked we can reach everyone again. it worked. every month, more than 1,000 foreign fighters join isil, and propaganda shows foreign fighters who brought their entire families. >> i'm here,. >> the foreign fighters who already joined isil gave their friend's contacts. media is the important thing for them to attract foreign fighters and popularity in iraq. >> and try to create popularity that expand generations. isil calls them their cubs, their hands not alarm enough to hold a rifle. and their minds not old enough to resist propaganda. the children up close, he used
to work for isil at the headquarters. >> what we work on most is recruiting children. when chirp are brain washed at a young age, they become strong-willed and believe that they will find redemption. >> omar used to sell goods to that isil stole. in this city, men pray on the street and women stay covered. and local demanders calls emirs or princes keep the peace. they have changed dramatically since omar first met them. >> at first, they brought in an alcoholic and criminal and appointed him emir, and now they have pushed them out. they have educated people who have a strong presence and lead people. >> the group is organized like a spider web. at the center, al baghdadi. they have no communication with the leadership.
>> they received orders b. you the source isn't known, and even isil wouldn't know the orm source of the information. >> a complex structure connecting every aspect of the group's ruthlessness. >> the value is spilling blood. they have no mercy. islam is mercifullering, but for them, people's lives are cheap. >> through fear and promises of profits, isil fills a state that might otherwise fight it, and today, isil controls an area the size of belgium. it's population is compared to new york city. and the officials warn that to remove isil will take years. nick is here in new york, and you've been here so many times it's great. and we have talked to you over the months about the financial side of this thing. and it's interesting that you postulate in the story that this is a financial enterprise
more than anything. >> not only is it a financial enterprise, but i think that we see isil and how to defeat it as an ideological thing. that kind of thing, that it's the adherence of people living in the self populated islamic state are all radicals, and that's not the case. this is absolutely run like a corporation. and the three people we met inside of it, the three others are not doing it for ideology, and they're doing it for money and that's how it's so embedded into northeastern syria and northeastern iraq. that so many people are simply benefiting from this group, and that's why it's going to be so hard. >> you showed us picture, and people wonder, how does it get anywhere, and you showed us a small river across which these jerry cans of oil and gas are crossed over the river and sold. and obviously, they have to sell this at a deep discount.
there are help involved. and smugglers involved. and somebody is going to want to pay a premium. and this is a big income. >> at some point, we thought it was $3 million a day. and think of it, a group like this, $3 million a day, and that makes it by far richer than al qaeda has ever dreamed of being. so even if it's less than that absolutely, it's making a lot of money, and the reason is everyone is making a little bit of profit. so everyone benefits. again, that's the problem. everyone is benefiting along the way. with the people outside of rack a. syria, near the refineries, they're getting paid less, and they bring it across the border and those smuggers are getting less than they would and the consumers are paying a little bit less. so everyone benefits from this stay. >> so you may not like isil, but you're saying that it's the money, and around the world, that seems to be universal.
i will tell you, as i watched this. i had some relief that it's not all ideological. and them i thought, you ran into the smugglers who stopped your car, they didn't like that you were telling the story, and what happened there? >> we drove into this town that's a well-known smuggler's haven. and they have been smuggling for decades, and they didn't like us being there, and we were followed down a rather bumpy stretch. and we kind of noticed it. and we hoped that it was okay. and we turned around and sure enough, we had been followed from the side streets, and somebody drove a tractor in front of us, and we hear the sounds and the stuff ling, and this woman who we spoke to calmed them down, and said look, i'm one of you guys, so relax, but this is a business. that's why they didn't like us exposing it. because they're making money
off of what the world is seeing as an ideological crime. and they will continue to make money, and that's why it's so important that turkey crackdown on the border, which has a little bit, but not entirely. and you have to get at the source of isil, why all of these people are benefiting from it. >> great to see you and great to have you here, nick schiffrin in the studio. the battle between red states and blue states is fought every election day, but what about >> devastating climates... >> if we don't get rain we'll be in dire straits... >> scientists fighting back... >> we've created groundhog day here... >> hi-tech led farming... >> we always get perfect plants everyday... >> feeding the world... >> this opens up whole new possibilities... >> tech know's team of experts show you how the miracles of science...
>> congress got back to work with the republicans in control in the house and the senate. and beyond politics, there's an economic division between america's red conservative states is and their blue more liberal counterparts. that split was a piece in the new york times by an author who is a good friend of our show and in it, richard asks the question, is live better in america's red states? the conservative states? richard sykes stated that housing costs are almost double in deep blue markets than they are in red markets.
$227 per square foot 119. and he said that red states have done a better job of offering a higher standard of living relative to housing costs, and he says that inequality has grown the fastest in the states with blue, more vibrant economies. new york, connecticut, massachusetts and california. however, the last line of the piece reads, the red state-blue state divide threatens to kill the real american dream. with us, the director of the institute at the school of management from miami. and richard, you read this piece, and you might get the impression that you are saying that red states do a better job. housing is cheaper, and standard of living is better but you're arguing that the future really lies in these blue states. tell us about this.
>> ali, what i wanted to understand is why red states clean the proverbial clock in the midterm elections. people don't know their interests, and what's the matter with kansas? everybody is a dummy and they're voting for the red states, and i thought maybe it has to do with simple economics. so i took a look. what it is, i think, what the piece in the times argues, is that the old american dream, the one that i grew up with in new jersey the nice single-family home for a middle-class person, and a car or a couple of cars, it's becoming almost completely out of reach for a person in an expensive blue state metro area, san francisco, boston, greater new york, but in a red state, because they have these extraction economies, and because benefited from the energy boom and because they can build houses anywhere, housing is cheap, and for a
working person, they can still afford to have a decent house and car and have that old leave it to beaver american dream. the trouble s. this this is the hook in the piece, that old version of the miles per hour dream isn't sustainable, because energy extraction, and build a bump of houses economy is not an economy at all. and it's the future, but it's expensive to live there, and also very expensive to run those economies, and that's the dilemma our nation faces. >> play this out. if we go down the track we're going on. with the economies more expensive to live n. and continue down that road. and the red states continue down the road they're going, where does that leave us? >> the red states have a cheep gross model. it's out of the found and the suburban sprawl.
and they can do that and have low taxes. but the red states that are the center of innovation, the san franciscos and the new york, the boston not only housing, but they have to pay for those state universities and they have growing inequality and they have to pay for the transit systems, and rail systems to get people armed. so their shrinking dream is really the product of a more expensive economy. what i fear and what really worries me, the fiction of the old american dream is very captivating. the rick perry state, that's how he's going to run his campaign. the low cost and maybe the way for texas and the red states but i fear that it will really threaten the investments that we need to make. innovation and great universities, and enveloping
our people with education, and the potential deficit that we're struggling with. so the future has to be the knowledge. but the knowledge economy isn't delivering the dream. >> so what's the solution? because really, the folks in the red states, particularly the people who run in the red states and govern them, are not going to read your piece and say, wow, we have to raise taxes, but they're going to milk if their as long as they can. >> and i painted too big of a picture, inequality is worse in the blue states, and life is better in the red states. i think of bill de blasio, a man that i admire very much. but he's a tale of two cities. a tale of the rich and a tale of the poor. that's not a united future. fdr, all americans prospering.
the blue state progressives have got to get off of the kick that it's us and them, the big divide. and we have to build a middle-class, and get with upgrading those low wage jobs, and building more affordable housing and expanding housing and building transit. a vision that they can get behind. >>behind. the all-american dream. a house and a car to commute to work. the blue state has to create a dream which is more than demoaning the divide, but we need a progressive vision of a future for every american to be able to prosper and have a hope for that dream. >> it's interesting to me, but the state right now with the lowest up employment statement and productive state is north dakota because of fracking. >> fracking, and hopefully the economy will stay stable, but
with oil and energy prices plummeting, it not only throws russia and parts of the middle east and venezuela in turmoil and i know i said this, an ultimately unsustainable red state dream. this could send the red states into turmoil, because all of that productivity has to slow down. look, we're very fortunate in the united states to have a knowledge, what we talked about before. a knowledge and an energy economy. with he to stop thinking anti-poet and start thinking that we can use the resources that we have from energy to build a knowledge economy, and that's the struggle we're centering, but now it seems that the cheap version of the american dream. >> in your piece, which is worthy of a read, you end up in a place that i'm very fond.
that is use that money and resources to do something that we don't do effectively in this country. richard, i look forward to having you on the show many times this year. richard is the director of the martin prosperity institute in toronto. the white house issues a threat on the keystone pipeline. with the oil prices dropping so rapidly, will the republicans keep up their end of the fight? >> protestors are gathering... >> there's an air of tension right now... >> the crowd chanting for democracy... >> this is another significant development... >> we have an exclusive story
have gotten control of both houses of congress, and is there any reason to believe that this won't continue for two years? >> yes, you've seen the movie. obamacare repeal, that's coming down the pipe too. and i heard you tease by saying the prices are dropping and are republicans going to hold onto the cherished dream of forcing the obama administration to build the keystone pipeline. and this is a goal of the republican base, and that's why mitch mcconnell as one, they numbered the bills in the house, the first one put forth a mitch mcconnell today x. his first act as majority leader is approving the keystone pipe line. they won't have to ram it now, they can do pretty much anything they want when it comes to something like this and in the senate, they're going to take it up soon enough, ali. and today, we got, no mistake, the first day of congress, while they're being coy at the
white house, the president hemming and hawing whether he's going to veto it or not, he said that he will if it is the same bill that passed in december to help mary landrieu louisiana. >> what happened? is the issue then dead? does it become campaign ads for people in the 2016 election? >> basically, that's what it is. what held us back in the senate a month ago was the lack of 60 votes and they probably have 60 votes now, there are democrats that favor it. >> that changed? he had hedged for a long time. and it certainly looked like he was heading toward not wanting this, and he was playing to his base and led leading up to the midterm elections but what after that made the president's mind up that this is not going through? >> we can read through this
machiavellian aspect of this the political mischief, but it's the same bill that he threated to veto in december and why wouldn't he veto it now? and i want to bring up one more thing, ali that you and your audience might be interested in. harkening back to voodoo economics, and yes, they passed a bill today, a measure today, a rule in the house instructing the ceo of the budget office on use dynamic scoring when adjourning the revenue aspect of various republican bills. it has come under a lot of ridicule. some call it the tax cut fairy but it allows the ceos to score in several different ways, using so-called dynamic scoring. >> this is the budget office, a non-partisan organization, and
they score it, and they tell you how much it's going to cost. >> right, revenues, how much revenues it's going to raise the whole shooting match. they are designed to be callers of a lot of balls and strikes on this stuff. >> a lot of snowy days in washington. tonight, a special report of the new congress. that's 8:30 eastern right here on aljazeera america. coming up, new technology designed to get companies all sorts of data about your personal behavior. data sensors on everything from baby clothes to baseballs. progress verse price. that's next. >> start with one issue education... gun control... the gap between rich and poor... job creation... climate change... tax policy... the economy... iran... healthcare... ad guests on all sides of the debate. >> this is a right we should all have... >> it's just the way it is... >> there's something seriously wrong... >> there's been acrimony... >> the conservative ideal...
>> it's an urgent need... and a host willing to ask the tough questions >> how do you explain it to yourself? and you'll get... the inside story ray suarez hosts inside story weekdays at 5 eastern only on al jazeera america >> the technology beacon fest known as the consumer electronics show is underway in
las vegas, and this year, a lot of buzz about devices that collect data using sensors from everything from cars to crock pots to baby clothes. and of course there's a dark side to all of this. and jake ward has more. >> reporter: at the consumer electronics show, the home of big and bold ideas, the focus is much smaller. tiny tech to put more of you and your life online. >> sensors, things that they have never talked about before. that's because they're getting smaller and lighter and cheeper and helping these companies get out in front of what they want their habits and routines. >> last year, it was like basketballs, and this year baseballs and crock pots and onesies and all sorts of things with sensors built in. >> these sensors are exposing us in new ways. because they reveal where we go, and when we're awake and asleep.
and the software that is analyzing that data has sophisticated portraits of where we are. things like visible car keels and traditional electronics with connected sensors, as small as 3 millimeters across, and even our bodies can be monitored on a constant basis. >> the more opportunity for exploitation, and we take it a very seriously. >> there's a lot of convenience to all of this, but there's a lot of danger too. many of the companies that are descending here in vegas have never been in the sensor business before. and they may not know how to safeguard that data against intrusion. these companies may have good intentions, but if 2014 has taught us anything, it means that your texts and emails are vulnerable. from our time of rival and the
lights we turn on when we walk in the door, a whole new world of data is up for grabs. >> ali, this was the first year this we saw a security corner at ce as much. and these companies of course are putting a lot of money into safeguarding this data. but the question is if they're up for the challenge of incredible activity of taking on a world of hackers that would love to get their hands on what these projects can do. >> compared to you, i don't think that i subscribe to these things. and i said myself, i have one of those devices that goes on my wrist and tells how i sleep. and i have a thing called tile attached to my wallet and keys. and i have a nest. over the holidays, my dad and i installed a nest thermostat which knows when i'm in the house and not in the house. >> i do too. i have to be honest with you
and it's incredibly vehement but convenient.but when you think about it there was an intrusion that people like the ns all a and hackers would love to use to intrude on your life. >> they take the information know when i'm awake and know when i'm in the house and where my keys are. >> you could not pay a spy to do a better job. and the smart televisions, which are the darling, are aggregating information, about where you are, and when you're home, and identify which of the viewers of the house you are. >> i like the other side of that deal. i like the idea when i'm in the internet, the ads are directed toward me. and when i go to a website, it knows my size and preferences. >> but the moment you are
applying for health insurance, and all of your web browsing has been about just having been diagnosed with something terminal and your health insurance premiums go through the roof, that's the world that we don't know anything about. and that's the consumer privacy portion of it that legitimate. we don't even know what the criminals could do with it. the companies like adidas and l'oreal, the first time into the show today, if they're ready for that at all. there's a whole new world of data. >> i only wear in during the night when i sleep. and if anybody hacks, i don't sleep all the time. jake ward from san francisco and that is our show today. and i'm ali velshi. watch, i'm actually going to walk off the set.
>> at least 38 people are killed in yemen in a suicide attack outside a police headquarters. we'll be live in a moment with the latest. you are watching al jazeera live from doha. also on the programme - the number of syrian refugees displaced by the war hit 4 million this year. indonesians search teams located the tail section of the airasia that crashed in the java sea with 162 on board. we'll introduce you to tiny